LONDON (Alliance News) - Shares rose in Petroneft Resources PLC on Wednesday after drilling success in licence 67 within the Cheremshanskoye oil field, Russia led to the approval of additional reserves.
Shares in the oil & gas company were 23% higher at 1.38 pence on Wednesday.
Following drilling in licence 67 of the C-4 appraisal well, PetroNeft has gained approval from the State Reserves committee for C1 and C2 reserves equal to proved and probable reserves of 19.3 million barrels of oil.
PetroNeft's assessment of the field has indicated the potential for reserves to more than double in the future, due to the current reserves not reflecting the full potential for the Jurassic intervals within the licence.
In addition, PetroNeft is looking to evaluate the prospectivity in the Cretaceous area within both the Cheremshanskoye and Ledovoye fields.
Historically, the area was difficult to target due to basing well sites on 2D seismic data; however PetroNeft said it believes that using 3D seismic data could help open up the area to exploration.
"This is a great step forward for the company following the drilling of the successful C-4 well in 2018. Now that we have reserves independently approved, we can start evaluating development options for the field with our partner," said Chief Executive Officer David Sturt.
"We are very excited about the ultimate potential of this field as we now have oil proven at both ends of this substantial structure. In addition to the reserves which are now proven in the Jurassic sands, we are also very encouraged about the potential within the Cretaceous interval where oil was identified in the C-4 well but could not be tested for operational reasons," Sturt added.